Adidas Group released preliminary results indicating that second quarter results would be “materially above market expectations.” Earnings reached €126 million ($159 mm), well above the €9 million earned in the year-ago period.
The average Wall Street estimate was €73 million. Adidas Group sales increased 11% currency-neutral, or 19% in euro terms to €2.9 billion ($3.7 bn).
In the first half of 2010, group revenues increased 7% on a currency-neutral basis or 11% in euro terms to €5.6 billion ($7.2 mm). Net income attributable to shareholders reached €295 million ($377 mm) versus €13 million a year ago.
Adidas did not provide additional details on its earnings. In May, however, Adidas raised its outlook, citing early benefits of its sponsorship of the World Cup. Adidas also sponsored a dozen World Cup teams – including host nation South Africa, Greece, Germany and winner Spain – and also provided World Cup match balls. At the time, Adidas said it expected 2010 profit to rise to between €430 to €480 million after posting weak results for 2009.
Second quarter earnings are due on Aug. 4.